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Consumer segmentation

Process of dividing a market into distinct subsets ofconsumers with common needs or characteristics andselecting on or more segments to target with a distinctmarketing mix.

Market segmentation benefits both consumer and alsomarketer. It also helps retailers, hotel chains, industries,

ad agencies Bases of segmentation-

Nine major characteristics of consumer provide mostpopular bases for segmentation-1 geographic, 2-demographic, 3- psychological, 4- psycho graphical, 5-sociocultural ,6-use related characteristics, 7-usesituation ,8-benefits sought, 9- hybrid- ex- handout

1- Geographic segmentation -people differ from areato area , region to region- micro marketing

2- Demographic segmentation- age, sex, maritalstatus, income, occupation and education

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3-Psychological segmentation

Inner qualities of individual consumer, i.e.. Level ofmotivation, types of personality, perceptions, learning's andattitudes

4-Psychographic segmentation-

Known as lifestyle analysis ,personality and attitudemeasurement, activity, interest and opinion ( AIO)measurement-table

5- sociocultural segmentation-

Family life cycles-young, old group of families, social class,culture and sub-culture, cross culture in global markets

6- use related segmentation-

Usage characteristics-level of awareness, level of usage,degree of brand loyalty etc. rate of usage differentiates as

heavy users- non-users, 7- usage situation segment-

Occasion or situation determines purchases orconsumption- corporate use hotels for meeting, weekendconsumption ,greeting card in diwali -new year etc

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8-benefit segmentation- refreshing cola, security-banks, nutrition- biscuits etc

9-Hybrid segmentation-

Psychographic +demographic profiles Geo-demographic

Effective targeting of market segmentation

Clustering consumers in to homogenous marketsegment as above and then select one or two segment

as target market to apply mktg mix is challenging. To be an effective target a market segment should b -1-

identifiable 2-sufficient, 3-sable or growing , 4-accessible- reachable for media reach and cost

Differentiated marketing - several segments usingsame single program of mktg mix application andconcentrated marketing targeting just one withunique mktg mix

Counter- segmentation- due to long applications of samemktg mix marketers recombine the segments or targetindividually prepared campaigns to continue further.